How to recognize WHEN to fade and not to fade S&R line/zone

B’Meter : Used As A Filter for Trading Break out

 It’s not unusual to see “stop” hunting trading activity near S&R (support & resistance) lines or zones in currency market. This notorious activity happens from time to time and is pushed through by big houses or market makers.

In order not to be caught in this trap and fall into victim, traders have their own trade set-up by entering on second thrust. But unfortunately if the first thrust doesn’t fall into manipulation break out, traders will be left behind and see the market makes a fast price movement.

B’Meter is developed to cover this discrepancy. It’s a leading custom indicator used as filter to recognize when to fade and not to fade S&R lines or zones. As a filter for trading break out, B’Meter gauges the strength of price movement while approaching the S&R line.

B’Meter provides strength value of price movement on one price bar before the break out through S&R line. This strength meter reading will tell whether there will be an impending break out or false one. False break out is usually seen as running the “stop” trading activity by big market makers.    ……………..   <MORE> click here 

Congestion zone

How To Recognize Congestion Zone at The Earliest Possible Time

Hongkong

Most of the time (approx 70% ~ 80%) price movement in currency pairs are trapped in the congestion zone. It is critical to recognize this zone at the earlier stage. The main issue is that at the earlier stage while forming the price pattern, it is rather tricky to differ congestion from trend forming.

Market congestion is defined as a temporary occurrence of price stability which is confined to the specific high and low price. It is a resting area, trying to seek for equilibrium between supply and demand in the market. It might last from one week to several months.

 

Congestion areas have been said to be considerably more exhaustive study than any other aspects of technical analysis. The problem here remains as “how to” quests for the following items:

1. To recognize the emerging of congestion zone at the earlier stage
2. To judge how long the congestion area is likely to last
3. To judge how far the ensuing trend is likely to carry on
4. To determine the trend direction of the breakout from congestion zone, possibly a trend continued or a trend reversed.                …………….<MORE> Click here

The Essence of Kathy Lien’s Book

Imperative points from Kathy Lien’s book  that paves the way to successful trading in forex market:

1.The Employment Component of Service Sector ISM is a very strong leading indicator for Non-Farm Payrolls Report

2.    There are also technicians who do factor fundamentals into their trading strategies and wait only for key economic releases to put on break out (BKO) trades.

3.    Break-out traders will want to know where to place their big bets based on what economics releases typically set off the largest movements.    <more>

Candlestick Camp

Candlestick Camp

 Long shaven candle indicates strong momentum in price movement. Doji candle signifies a loss in momentum.

Doji

Candle reversal patterns are only valid when they form near significant support and resistance levels, not in the middle of a ranging market.

Ignore any shaven candles on the charts during times when important economic news is announced.

Never try to predict trend reversals and enter the market based on a single Doji candlestick in a downtrend movement!!!

  

The presence of long multiple shadows usually indicates the weakening of support or resistance levels.

Trading can never be a “job”, trading is a “passion”

Prominent points required to lead the pathway to success on trader’s life:

Never force a chart pattern.

Trading can never be a “job”, trading is a ”passion”.

They are quite different! Greed can never get enough. Selfish wants it all.

You can’t buy success. You’ve got to earn it through education and experience. (Robert Miner)

The ability of many of the professions to make profits is not a function of the professional, it is a function of the system.

Although technical analysis has its part in Forex trading, it is important to understand that market does not move just because a technical breakout or a candlestick pattern.  By understanding fundamentals, a trader will have a powerful edge over the market in the mid to long term. (Henry Liu)

No matter how much we read, listen and study in any field, including trading, we will make mistakes, lots of them. Trading is like any other business. The real skill and success only comes after a lot of experience. (Robert Miner)

What ever you don’t know, don’t assume it doesn’t exist. (Dar Wong)

Don’t think about missing a trade. Think about getting the right setup & not loosing any trade! (CaseyStubbs)

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